BMC 2022-2023

Case Name 5. Sevilla vs. CA

Topic Lesson I: Characteristics of Partnership
Case No. |
G.R. Nos. L-41182-3 | April 15, 1988
Date
Ponente
Doctrine

RELEVANT FACTS

● Tourist World Service Inc., leased the premises belonging to Noguera to use a branch office. Sevilla
ran the branch office, payable to TWS. Any sale brought on the efforts of Sevilla, 4% would go to
her, and 3% to TWS.

● Upon TWS hearing that Sevilla was connected with a rival firm, TWS considered closing down its
office. The contract with Sevilla for the usage of the premises was terminated. Canilao, corporate
secretary, padlocked the premises so neither Sevilla nor any of her employees may enter.

● Sevilla filed a case claiming that she was not a mere employee, that it was a joint venture.

RATIO DECIDENDI
Issue Ratio
WON the contract
entered into by the No. It was a contract of agency. The fact that Sevilla was designated as branch
parties were one of manager does not make her TWS’ employee. However, considering the nature of the
joint venture relationship, it was not one of joint venture/partnership either. Sevilla recognized
that TWS has the right to stop the operation of their branch office.

It is the Court's considered opinion, that when the petitioner, Lina Sevilla, agreed to
(wo)man the private respondent, Tourist World Service, Inc.'s Ermita office, she
must have done so pursuant to a contract of agency. It is the essence of this contract
that the agent renders services "in representation or on behalf of another."

In the case at bar, Sevilla solicited airline fares, but she did so for and on behalf of
her principal, Tourist World Service, Inc. As compensation, she received 4% of the
proceeds in the concept of commissions. And as we said, Sevilla herself, based on
her letter of November 28, 1961, presumed her principal's authority as owner of the
business undertaking. We are convinced, considering the circumstances and from the
respondent Court's recital of facts, that the parties had contemplated a principal-
agent relationship, rather than a joint management or a partnership.

Sevilla was a travel agent herself, her interest is not to the commissions she earned
 BMC 2022-2023
as a result of her business transactions, but one that extends to the subject matter of
the power of management delegated to her. It is an agency that cannot be revoked at
the pleasure of the principal. Joint venture – presupposes generally of standing
between the joint co-venturers, in which each part has an equal proprietary interest
in the capital or property contributed.

RULING

NOTES